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Sunday, February 20, 2011

After several years investing in the stocks market, I believed that there are no special rules or theories that can guarantee us to make money. It may depend on your right judgments, timing and the most importantly is our investment objectives and also our lucks.

The stocks market can be viewed as the situation that we are fishing. Our fishing rod must be appropriate, our strategy and timing must be right in order to get a desired outcome. The conservative opinion normally is saying that we must look for the fundamental when dealing with our investment at stocks market, but sometimes we must understand that, normally that majority of the investors are more interested for high price volatility and liquidity of shares in the market. From that, they can apply the rule, buy at low price and sell at higher in order to achieve their required returns.

If I have extra money, I will focus on Oil & Gas as well as Telecommunications Stocks in 2011 in Bursa Malaysia. However, so far I don’t (Due to Lack of personal funds), but I am intend to do so.

Why Oil and Gas?

Commodities like crude oil are tied directly to Malaysia economy’s performance, due to Malaysia already become oil producer. Some of the players in the industry may benefited from the recent increase of oil price and the recent findings of new oil and gas fields by Petroliam Nasional Bhd (PETRONAS) offshore Sarawak are expected to boost the country's reserves.

A source quoted that Malaysia currently has 106 marginal oil fields containing 580 million barrels of oil and Petronas planned to develop 25% of the total marginal oil fields to replenish its oil reserves and generate new revenue streams.

Why Telecommunication?

Telecommunication industry is experiencing huge growth as more people use more of its services, whether mobile services or fixed. I may consider buying some stock from telecommunications companies because they currently offer great dividends payout. In Malaysia, among the telecommunication companies that pay quite attractive dividends are like TM, Maxis, DiGi while Axiata is believed to start paying dividends this year. But, however, I cant afford to invest in DiGi due to the price per share is more than RM 20 per share already.

Why Don’t Plantation Companies?

I am not favorable for this stocks due to the majority of this stocks, the share price are already high. Better to find out the stocks which affordable for me to invest but can give some capital gains or dividends.

Monday, February 14, 2011

The stock market actually is my favorite investment platform. However to success in investments requires knowledge about values and stocks in which one is investing as well as the risks that those values carry. Investment opportunities are very broad and the abundant information that exists in the internet may help us get more knowledge about those investment opportunities.

Normally the simple guiding principle to invest in stock market is very simple which is buying at low price and sell when the price is higher. However, I believed the majority of investor knows when to buy, but having difficulties, when to sell? It just because we start feel greedy, and we normally tend to forget about our investment objectives such as for example to get at least 15% return from every contract purchased from every stock. From structured investment strategy, we tend to move on the speculative mode.

Speculative is whereby, putting money in a place in which opportunities to get a very high financial return through a determined period of time are just minimum. I am in the opinion that investing and speculating are not the same; where, speculating is more related to gambling in which odds are against the individual that decides to invest. In speculative investment perspective, the risk of loosing in future contract investments area extremely high. People just rely on tips that can be obtained from fiends, rumors whereas investing is referring to the situation that people rely to the credible information to execute the investment strategy.

However for my personal investment philosophy, I will try to adapt some processes or tips:

1. Get additional knowledge and become educated about the investment. Analyse and understand about stocks and the market, take a seminar or class on investing and review online financial sites.

3. Do a research for each individual stock by reading annual reports, quarterly reports and other documents on file with the Securities and Exchange Commission. For muslim, they may want to ensure that the stocks compliance with Syariah panel committee.

4. Invest in what I know. Be considering the stocks of local companies that I am more familiar and in which I have confidence.

5. Check out the holdings of some successful fund management companies. If they are winning with particular stocks, perhaps I will follow too. For example Employee Provident Fund, Mutual-Fund etc.

6. Diversify. Avoid putting my money in just one or two stocks or, for that matter, in one or two industries.

7. Use a discount brokerage to buy stocks.

8. Buy stocks that I feel comfortable holding for two to four years. Resist the temptation to dump a stock the moment its price drops a few percentage points. Give it a chance to perform.

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About Me

I was born in Sungai Bakau,Parit Buntar,Perak. I am considering myself as "Orang Biasa" or Ordinary Person and I came from a rice farming family. “Bancik” is my nick name.The views and opinions expressed on this blog are purely the blogger’s own and do not reflect the views of other individual or institution.